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Distressed Property

Distressed Property

A distressed property is any property that is under foreclosure or will be under foreclosure due to missed payments by the current owner. Because the property is distressed, it will usually sell for a purchase price much lower than market value. If a homeowner cannot make payments and will agree to it, the distressed property may be sold by means of a short sale. A short sale is simply a way of selling that home that will also bring it below market value and at less than the balance on the loan, with the lender agreeing to take this lesser amount as a method of avoiding a foreclosure. Anyone may purchase a distressed property and may find that the seller, be it bank or private owner, is motivated to move the distressed property quickly.